LAYNE WATER MIDSTREAM AUGUST 2017

Transcription

1 LAYNE WATER MIDSTREAM AUGUST 2017

2 LAYNE CHRISTENSEN 135-year old, global water well and water resources company + Largest in U.S. + Leader in our markets + Publicly traded on NASDAQ Nationwide operations + More than 220 pump and water well rigs + Over 2,000 employees Largest source water infrastructure system in the Delaware Basin Significant energy expertise PROVIDING RESPONSIBLE SOLUTIONS TO THE WORLD S TOUGHEST WATER CHALLENGES 2

3 NASDAQ LAYN SOURCING REUSE INFRASTRUCTURE WATER WELLS DRILLED DISPOSAL 3

4 INDUSTRY LEADERS LAYNE HAS NATIONWIDE OPERATIONS Locations Headquarters ONE OF THE MOST RECOGNIZED AND TRUSTED BRANDS IN THE WATER INDUSTRY 4

5 A DISTINGUISHED LEGACY CREATED FIRST PITLESS PUMP INVENTED GRAVEL WALLED WELL SOURCED WATER FOR MANHATTAN PROJECT DRILLED WATER WELLS FOR U.S. TROOPS IN AFGHANISTAN RESCUED WORKERS IN CHILEAN MINE 2017 FIRST HIGH CAPACITY WATER PIPELINE IN DELAWARE BASIN 5 5

6 LAYNE WATER MIDSTREAM Partner with land owners to provide water midstream solutions that maximize exploration and production potential by reducing costs while minimizing environmental impacts Permanent Water Pipeline Produced Water Pipeline Non-Potable Water Source Water Storage Well Completion Flowback & Produced Water Disposal and Recycling Truck or Temporary Pipeline Truck or Temporary Pipeline AFFORDABLE, RELIABLE, SUSTAINABLE WATER SOURCES 6

7 LAYNE WATER MIDSTREAM More wells, more water in the Permian As West Texas Permian Basin continues to boom, operators there keep increasing the size of their hydraulic fracturing operations, which pump millions of gallons of water downhole to overpressure wells, crack rock and release oil and gas (ESTIMATED) Growing need for large scale water infrastructure Past Trucking IN BILLIONS OF GALLONS Source: IHS Markit, Houston Chronicle Future Pipeline & Infrastructure Water industry rapidly moving to large scale storage, pipelines and delivery INCREASED WATER DEMAND NECESSITATES A MIDSTREAM APPROACH 7

8 WATER MIDSTREAM TEAM Michael Anderson President, Layne Water Midstream Byron Geeslin Vice President, Layne Water Midstream Byron Bevers Engineering & Business Development Josh Thomas General Manager - Operations Tim Patrick Land & Business Development Chad Strahan Land & Business Development Andy Kilgore Produced Water 3 years leading Enron s global water business 12 years energy service and midstream, led two IPO s of MLP infrastructure business MBA The Wharton School, BBA - Texas Tech 10 years midstream commercial, M&A and finance experience Previous experience includes: Southcross Energy Partners, TGGT Midstream, and Bank of America investment banking MS Finance, BBA Accounting Texas A&M 10 years water engineering experience Previous experience includes: Lockwood, Andrews & Newnam, Bleyl & Associates and City of Shenandoah BS Civil Engineering Texas A&M 15 years energy operations and engineering experience Previous experience includes: Southcross Energy, Chesapeake Energy, Quicksilver Gas Services, Crestwood Midstream and Panhandle Energy BS Mechanical Engineering Texas Tech 15 years experience in land and oilfield water management Previous experience includes: Select Energy Services, Bobcat Resources, and Petro-Land Group Interdisciplinary Studies University of Texas at Dallas 5 years energy experience in land & finance Previous experience includes: Devon Energy and ExxonMobil MBA - Notre Dame, PLM - Texas Tech 7 years produced water commercial and operations experience Previous experience includes: BlueJack Energy and Enlink Midstream BS Business Miami University 8

9 HERMOSA PIPELINE Strategically Located + Thickest portions of Pecos Valley aquifer + Most active drilling county in U.S. Long-Term Water Source + 1,000 acre facility near Pecos, TX + 100k+ bpd of high quality non-potable water + Ample aquifer resources for 15 years + 750k barrels of storage High Capacity Delivery System + 20 miles of 22-inch HDPE pipeline + 100k+ bpd capacity + 13 delivery locations HIGH CAPACITY SOURCE WATER DELIVERY IN DELAWARE BASIN 9

10 1 HERMOSA CASE STUDY Challenge Operator desires to begin rapid long-term drilling program in less than six months; no high-volume water sourcing solutions available. Solution Execution Layne leverages vast water experience to find plentiful, sustainable water source within 15 miles. Operator and Layne agree to multi-year price and volume commitment which benefit both parties. Layne obtains ROW and constructs 20 miles of 22 HDPE pipe, builds 750k bbl storage facility, and develops 100k+ bpd water well field in less than 5 months, beginning water deliveries ahead of schedule. SUSTAINABLE WATER SOLUTION PROVIDING LONG TERM OPERATOR SAVINGS 10